Major parties accused of avoiding reform

There are calls for an independent watchdog to oversee politicians' entitlements, with major political parties accused of failing to reform the system following the Sussan Ley expenses scandal.

Minor parties and independents warn the latest scandal is damaging to Australia's democracy and another example of why Australians are sick of politicians.

Greens leader Richard Di Natale and crossbencher Nick Xenophon have vowed to reintroduce legislation this year after Ms Ley stood aside as health minister pending an investigation into her taxpayer-funded trips to the Gold Coast.

But the federal government insists changes to the system will be made in the first half of 2017.

Acting Special Minister of State Kelly O'Dwyer said the government was working to deliver on 36 recommendations made by an independent review 11 months ago after Bronwyn Bishop's expenses scandal.

Central to the changes is a clearer definition of parliamentary business, she said.

"Australians work exceptionally hard for every dollar they earn and they quite appropriately and rightly expect that when they pay their taxes to the government that their money is spent wisely."

Fresh from Ms Ley's admission she bought an $800,000 apartment during a taxpayer-funded trip and charged taxpayers to attend New Year's Eve functions on the Gold Coast, it's been revealed four cabinet ministers billed taxpayers almost $7000 to attend a New Year's function hosted by Prime Minister Malcolm Turnbull in 2015.

"This is why so many Australians hate so many politicians," Senator Xenophon told ABC radio.

He wants an independent watchdog to oversee the system, real-time disclosure of claims, and harsher penalties for those who exploit the rules.

He first drafted laws to overhaul the system two years ago but failed to secure support for the changes in parliament.

"I'd like to think that there'll be a keener interest on the part of my colleagues on both sides from the major parties to consider this seriously because clearly what they've done to date doesn't work."

Independent MP Andrew Wilkie insists there are systemic problems that allow parliamentarians willing to spend public money improperly to get away with it.

He said neither Labor nor the government supported his motion in parliament requiring MPs to list all activities undertaken on taxpayer-funded trips.

Rather than just paying back the money or stepping aside, he wants politicians who rort the system to face criminal charges.

"It is no secret in Canberra that some MPs will, from time to time, perhaps often, travel wherever they want in the country and they will dress it up as an official trip," Mr Wilkie told reporters.

Opposition frontbencher Linda Burney said Labor was open to discussion about a federal corruption watchdog but insisted the best course of action was for MPs to understand current rules and follow them.